The US government has ruled out plans to license a few American companies to resume dealing with the Chinese tech giant, Huawei. The Trump administration said categorically that it plans to
allow Huawei to only sell and supply non-sensitive goods to other US companies. This unprecedented move is expected to ease tensions between the two countries, which have been in a constant trade war over the past year.
Although the US has been accusing the Huawei Company and other entities in China of orchestrating cyber-attacks against the country, Huawei has been categorical in denying these allegations. This prompted the Trump administration to issue strict regulations in terms of how these companies were to deal with the US. The consequent ban of Huawei led to the subsequent withdrawal of the company from a trade pact with Google.
The administration, however, maintained strict control of the usage of China-made tech equipment. Key military departments, as well as state and public offices, withdrew from the use of Huawei products early last year. The national security concerns have prominently dominated the entire US-China trade war, with the Trump administration issuing sanctions against major tech companies from China.
As the US-China trade negotiations are expected to kick-start within the next few weeks, the two sides are expected to bring onboard strict demands. The US, in particular, has been leveraging Huawei in its negotiations by strategically withdrawing and withholding its US operational licenses. Earlier this year, in June, President Trump had assured China that it would issue trade licenses to Huawei and other tech companies to deal with the US. No licenses, however, have so far been issued, a clear sign of non-commitment by either party.
Although the government has received hundreds of such trade licenses from Chinese tech companies, none have been issued, pending the resumption of trade talks between the US and China. Huawei, the world’s largest telecommunications equipment manufacturer, has found itself on the receiving end as the US has constantly delayed its licenses to operate within the country until a commitment is shown by the Chinese government on specified areas of national security and economic importance.
The current move to license Huawei to provide goods and services to the US could be a clear sign of positive things to come. It is expected to bring back commitment and understanding between the US and China, even as negotiations move to high gear.